LIC’s market share slipped below 70% in FY18

State- owned Life Insurance Corporation’s (LIC’s) market share fell below 70 per cent in the financial year ended March 2018 as private insurers get more aggressive.

The market share of private insurers increased to 30.64 per cent in 201718, from 28.19 per cent in 2016-17.

“On the basis of total premium income, the market shares of LIC decreased from 71.81 per cent in 2016-17 to 69.36 per cent in 2017-18,” said the annual report of the Insurance Regulatory and Development Authority of India.

Further, the market share of private insurers in new business premium also saw an increase during 2017-18 over the previous year. In the case of renewal premium, LIC had a share at 69.35 per cent (down from 72.31 per cent in the previous year). This compares with 30.65 per cent (27.69 per cent in the previous year) share of private insurers.

During 2017-18, life insurers issued 28.2 million new individual policies, of which LIC issued 21.4 million policies or 75.7 per cent of the total new policies issued and the private life insurers issued 6.8 million policies (24.3 per cent). “While the private sector achieved a growth of 8.47 per cent in the number of new policies issued against the previous year, LIC achieved a growth of 5.99 per cent,” the report said.

During 2017-18, life insurers issued 28.2 mn policies, of which LIC issued 21.4 mn